Horta Osorio believes that Centeno’s authority as governor was not damaged

Former banker Horta Osorio said this Thursday that the credibility of Mário Centeno as governor of the Bank of Portugal has not suffered since he was proposed for the post of prime minister, and that a government led by Centeno would be a good option.

“I don’t see that the solution to this situation will jeopardize the governor’s independence,” Horta Osorio told reporters on the sidelines of the Banca do Futuro conference in Lisbon.

Horta Osorio said that the President of the Republic, Marcelo Rebelo de Sousa, with whom he has maintained friendly relations for more than 30 years, “proposed an option that he considered best for the entire Portuguese people,” but if he had gone through with the problem of maintaining the government with Centeno as prime minister would also be a good option.

“Professor Mario Centeno, thanks to the work he did as Minister of Finance, President of Ecofin and Governor, had all the conditions to create a good place,” he said.

Regarding the impact on the country’s image of the dismissal of the Prime Minister due to investigations carried out by the State Ministry, Horta Osorio said that there is a “cost in terms of instability and uncertainty for the country”, especially since the new chief executive will take on at least one more position . five years months. The former “chairman” of the Credit Suisse group and former executive president of Lloyds also defended that justice is independent, but what happened should be carefully examined and discussed at the highest levels and throughout Portuguese society.

“This requires deep thought,” he added. Today, speaking at the same conference, Bank of Portugal Governor Mário Centeno said the country was going through a moment of reflection, citing David Mourão-Ferreira’s lines about the risks of being a freethinker.

“By your free thought/They went so far to silence you/So far that my cry/Cannot reach you,” Centeno said, quoting the poem “Abandonment.” At the end of the conference, Centeno did not speak to journalists following the controversy that surrounded him due to the current Prime Minister António Costa’s proposal to replace him in the post.

Even after the President of the Republic, Marcelo Rebelo de Sousa, decided that early legislative elections would be held on March 10 following the dismissal of António Costa (for being the subject of an investigation by the Ministry of State), Centeno’s proposal attracted criticism. from the opposition parties and the dispute between Mario Centeno and the President of the Republic. Speaking to the Financial Times on Sunday, the Bank of Portugal governor said he had received “an invitation from the president and prime minister to think and consider leading the government” and that he was “very far from doing so.” solution”.

In response, in the early hours of Sunday to Monday, the President of the Republic published a note in which he denied that he had invited anyone to head the government, including the Governor of the Bank of Portugal, Mario Centeno, or authorized any contacts to do so. made.

Marcelo Rebelo de Sousa’s statement prompted Centeno to correct his statement: “It is obvious that the President of the Republic did not invite me to lead the government” as he decided to dissolve the Assembly of the Republic, Mario Centeno said in a statement.

Mario Centeno’s conduct led to an extraordinary meeting of the Bank of Portugal’s Ethics Committee for assessment, which found that the manager had fulfilled his general duty of conduct and “acted with the necessary qualifications.”

However, he adds that “at an objective level, subsequent political and media developments may damage the Bank’s image,” given that “the protection of the institution is even more relevant in a period such as the current one.” In this sense, the commission chaired by Rui Vilar recommends that “the governor, the administration and the bank as a whole remain committed to protecting the image and reputation of Banco de Portugal.”